|
Anadarko gains attention for offshore Africa prospects
By Steve Gelsi, MarketWatch
Last Update: 1:50 PM ET Nov 4, 2009
NEW YORK (MarketWatch) -- Shares of Anadarko Petroleum Corp. rose as much as 5% Wednesday, the gains coming as investors consider fresh plans by the oil company to explore off Africa's western coast and in waters off Brazil.
The shares also tapped into buoyant conditions in the broad energy sector on data showing contraction in U.S. inventories last week. See related story.
However, The Woodlands, Texas-based company appears to be enjoying a bit of an extra punch following its third-quarter earnings update issued Monday and its conference call with analysts. See earnings story.
Shares have risen more than 6% in the last two days, after Anadarko APC reviewed successful results thus far at the Jubilee prospect off the coast of Ghana.
Anadarko said this week it's pursuing an aggressive appraisal-drilling schedule during the remainder of 2009 and throughout 2010 at the prized Jubilee field and elsewhere.
After announcing the fruitful Mahogany-4 appraisal in October, the company plans to continue drilling the Mahogany Deep-2 well and expects to spud the M5 well in the first quarter. Both these projects will test the far southeast corner of the Jubilee area, which Anadarko termed a "world-class" field.
"With positive results from these many well activities, we would expect that the Jubilee partners and the Ghanian government to consider increasing our net working interest," CEO James Hackett told analysts.
Partners in the Jubilee field include the U.K.'s Tullow Oil , Kosmos Energy and the Ghanan government.
Upcoming drilling is occurring in the West Cape Three Points Block, where Anadarko holds a 31% interest, compared to its 23.5% interest in the Jubilee field.
Interest in Ghana's energy resources has been rising on Wall Street since Exxon Mobil XOM reportedly bid $4 billion last month for the share of the Jubilee field held by Dallas-based Kosmos.
Asked by an analyst to elaborate on when it could see an increase in its working interest in Jubilee, Hackett said: "We've got to be careful speaking to that because the government has to be a part of that process. So ... while I would love to be more clear with you, it's not in the interest of our shareholders to do it."
Anadarko also plans to drill in the on-shore Mecupa exploration prospect in Mozambique.
In addition, Anadarko said it plans to share results in the fourth quarter of fresh drilling programs in deep sub-salt areas in the Atlantic Ocean outside Brazil.
The company's appraisal program began with its recently spud Wahoo 2 pre-salt appraisal well in the Campos Basin at Block BM-C-30.
The well is located about five miles north of its earlier Wahoo discovery and will be drilled to about 19,000 feet.
The company plans to appraise the pre-salt pay zone discovered at Wahoo as well as to test a deeper exploration target.
|